In the United States health insurance is expensive – especially for individuals who are not covered by an employer’s plan. Large organizations are able to bargain with health insurance companies for lower rates, which is a luxury a single freelancer does not have. However, having health insurance is important and understanding the basics can make choosing a plan much less overwhelming.
Understanding the Different Types of Health Insurance Plans
Choosing a freelance health insurance plan begins with understanding health insurance in general. The website Health Insurance In Depth describes the types of plans a freelancer might choose:
- Indemnity Health Plans: Also known as fee-for-service, this type of plan offers great flexibility allowing the freelancer to choose his own physicians and facilities. However, preventative medicine is usually not covered and this type of plan is usually more expensive than others.
- Health Maintenance Organization (HMO): The most common type of health insurance in the US, this plan offers freelancers lower costs by requiring patients to use pre-approved doctors and facilities. Preventative care is often covered.
- Preferred Provider Organization (PPO): Under this plan the freelancer can choose to use less expensive pre-approved doctors or pay extra to choose her own physician. This type of plan offers more choice than an HMO but is also more expensive.
- Point of Service (POS): Under this plan freelancers choose their primary care physician from an approved network. This physician can then make referrals to physicians outside the network. However, using physicians outside the network is costlier than using those within it.
Tailoring Freelancers Health Insurance to Individual Needs
Cost is usually the main concern when choosing a health care plan. Individuals that are fairly healthy often find it useful to choose a plan with a higher deductible and lower monthly premiums – saving a great deal of money on premiums. Freelancers that are often sickly will not find this a useful option.
However, freelancers can tailor their plan in other ways as well. Removing dental, vision, or mental health care coverage from a plan can also help reduce premiums. As with so much in life, there are always trade offs.
Finding Health Insurance for Freelancers
Self-employed individuals have several options available to them when looking for freelancers insurance:
- Group Health Insurance: Large groups can negotiate with insurance companies so its members pay lower premiums. The Freelancers Union offers health, dental, and life insurance to freelancers in several industries including domestic childcare, technology, arts and health care. Freelancers may also want to consider groups such as the National Association for the Self Employed, the National Writers Union, or MediaBistro.
- Chamber of Commerce: The purpose of a Chamber of Commerce is to support local business and that includes freelancers. Many freelancers find health insurance through their local Chamber of Commerce. However, health insurance details will vary by Chamber.
- Broker: Some freelancers determine that finding a health insurance broker is the easiest way to get good health insurance. A broker will research insurance companies on the freelancer’s behalf and find the best deal for his situation. This option is often best for people with pre-existing conditions that have had difficulty finding health insurance.
- Going Solo: It is perfectly possible for a freelancer to find a good health insurance deal on her own. Websites such as eHealthInsurance can make researching plans easier. A freelancer can input her information into a form for immediate insurance quotes and compare plans side-by-side.
Further Considerations for Freelancers
Health Savings Account (HSA): This is not an insurance plan but it can make health care coverage more affordable. In this plan the freelancer has a high deductible, but the monthly deposits he makes to his account are not taxed and can be used for any out of pocket health care costs. An individual must have a High Deductible Health Plan (HDHP) to qualify for an HSA.
Megan Jungwi - Megan Jungwi started her freelance writing career in March 2009. Although new to online writing Megan has long been passionate about the ...
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